From left, Korean Finance Minister Choi Sang-mok, Korean President Yoon Suk Yeol, Philippine President Ferdinand Marcos Jr. and Secretary of the Philippine National Economic Development Authority Arsenio Balisacan exchange a memorandum of understanding on the Economic Innovation Partnership Program at Malacanang Palace in Manila, Oct. 7. Yonhap

Korea signed an agreement Monday to provide $2 billion in financial assistance to the Philippines to support major infrastructure projects during President Yoon Suk Yeol’s state visit to the nation, Yoon’s office said.

The finance ministry signed the memorandum of understanding (MOU) in Manila to offer the assistance through the Economic Development Cooperation Fund (EDCF), the low-rate loan program to support infrastructure projects in developing countries.

Under the agreement, the Seoul government will allocate $905 million worth of EDCF funds for the construction of the first section of the Laguna Lakeshore Road Network, which spans 37.5 kilometers of roads and embankments along Laguna Lake, near Manila.

Additionally, $1 billion will be allocated for the construction of a 13-km bridge connecting the three central Philippine islands of Panay, Guimaras and Negros.

It marks the largest EDCF project with the Southeast Asian nation. Bidding for these projects will be open to Korean companies.

The ministries also signed a $110 million loan agreement for the second phase of the Samar Coastal Road project for the construction of two new bridges and road renovations in the southern region to further expand infrastructure cooperation.

Another MOU was signed on the Economic Innovation Partnership Program to support the Philippines’ efforts to establish electronic government services and satellite communication networks in the next three years.

The signing ceremony followed Yoon’s summit with his Filipino counterpart, Ferdinand R. Marcos Jr., which focused on expanding trade and investment between the two nations. (Yonhap)